Now here’s a subject that 95% of parents don’t want to talk about. No parent wants to think that a child might die and therefore we don’t want to plan for that occurrence. I understand the emotional issue behind it, being a parent myself.
Childrens life insurance, sometimes called juvenile life insurance, can actually be a prudent way to give a child an inexpensive jump start on their own insurance portfolio when they become an adult.
There are policies out there that can provide small amounts of coverage, truly no more than burial policies, during a child’s growing years. Some increase incrementally as a child gets older. Usually at age 23 the child has the opportunity to convert their juvenile policy into a larger personal policy. The next thing I want to say is so important and is the key to the importance of a juvenile life insurance policy. That conversion DOES NOT REQUIRE EVIDENCE OF INSURABILITY!!! No matter what your child’s health is at the time, the company is bound to offer them the adult policy without any rating due to health problems. Even if your child only gets diagnosed with ADD, life insurance as an adult can be very expensive.
These policies are very inexpensive if you buy them as stand alone policies. Do not add a child rider to your policy or buy a Gerber or Globe Life policy unless you just feel like paying more money than you need to for your childrens life insurance. If you have a child rider or a Gerber or Globe policy, seek out a more affordable alternative and cancel it once the new policy is in force.